CA AB1582

Allows successor agencies that receive a finding of completion from the Department of Finance to designate loan agreements, contracts, or arrangements with their creating city, county, or city and county as enforceable obligations if the oversight board approves and finds the loan was for legitimate redevelopment purposes.

Requires interest on remaining unpaid loan principal to be recalculated from the loan origination date using the historic interest rate earned by the Local Agency Investment Fund at the time of origination, adjusted quarterly over time.

Establishes repayment limitations requiring loan repayments to begin no earlier than 2013-14 fiscal year, with maximum annual repayment amounts equal to one-half of the increase in tax distributions between the current and 2012-13 base year, with loan repayments second in priority to other obligations.

Directs that 20 percent of loan repayments be transferred to the Low and Moderate Income Housing Asset Fund after outstanding Low and Moderate Income Housing Fund loans are repaid.

Establishes requirements for bond proceeds issued between January 1, 2011, and June 28, 2011, to be used only for projects meeting specified sustainability and planning criteria, with unused proceeds to be used to defease or purchase bonds for cancellation.